Equity firm acquires majority ownership of ATI

A global private equity firm has acquired a majority ownership of Bolingbrook-based ATI Physical Therapy, it was announced Tuesday.

Boston-based Advent International acquired its stake in ATI from KRG Capital Partners. Financial terms were not announced, and the deal is expected to close in the second quarter of this year.

ATI's current management team led by CEO Dylan Bates will retain a minority stake and continue to lead the company, Advent International said in a release.

Founded in 1996, ATI is a national rehabilitation provider, specializing in research-based physical therapy, workers' compensation rehab, employer worksite solutions and sports medicine. ATI operates more than 500 clinics throughout the U.S., including 127 in Illinois and 55 in the suburbs,

Under the agreement, Advent operating partner Dr. Chris Krubert will join ATI's board of directors. Krubert served for nearly a decade as CEO of ApolloMD, a health care services firm comprised of more than 2,500 professionals specializing in a variety of fields.

"ATI has become a leader in its chosen markets and we see a number of avenues for continued growth and expansion," said John Maldonado, a managing director at Advent. "ATI is a high-quality operator with best-in-class clinics, a strong leadership team and active de novo and acquisition strategies that we believe will enable it to grow by opening new ATI clinics and by being a primary consolidator in a fragmented industry."

ATI's acquisition adds to Advent's portfolio of global health care services investments, which total more than 35 companies in 14 countries. Among its holdings are Genoa, a QoL Healthcare Company, a U.S. specialty pharmacy operator focusing on the mental health community; Mediq, a Netherlands-based international distributor of pharmaceuticals, medical devices and other services; and Cotiviti, a leading payment accuracy provider in the U.S.

Bates noted Advent's resources and expertise in the health care services field will help the company with its plans for further expansion.

"With Advent's support, we will continue to focus on our core competencies that drive growth, operational efficiency and the very best physical therapy offering for patients across the country," Bates said.